Federal Govt wants industrial relations out of super

30 January 2020

The Federal Government has signalled its intention to ensure that default superannuation is broken away from the industrial relations agreements.

The Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume has told a superannuation forum that Australia’s superannuation system had matured to a stage where it no longer needed “the coddling of the industrial relations system”.

“… as a universal coverage system, those who gave birth to it can be proud of its origins as a workplace entitlement,” Hume said. “But like many parents who have a 28-year-old still living at home can attest, it has developed some strange habits and the odd hang-up. Like multiple accounts. Like complexity and opacity. Like high fees. Like underperformance without accountability and a bad sense of entitlement.”

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“If we are to address these bad habits of our superannuation system, it’s time for the child to grow up and leave home. The retirement savings system no longer needs the coddling of the industrial relations system,” she said. “It’s $3 trillion dollars. It’s bigger than the ASX [Australian Securities Exchange]. It’s bigger than Australia’s GDP [gross domestic product].  It’s big enough to stand on its own two feet.”

Hume said that while payment of superannuation savings was just as much a workplace entitlement, as the payment of wages, choice of superannuation fund should not be dictated by a person’s workplace.

“So while I’m not going to say where the Government will land on the question of default fund choice, stapled accounts, best-in-show and all the various other models out there, I will venture to suggest we won’t get to our desired destination of an efficient, single default while the superannuation child is still living at home,” she said. “In two years’ time our compulsory super system turns 30. It’s time it grew up.”

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What's their plan then to keep it clear and transparent? its worked fantastically for the last 30 years for the vast majority of people, its part of pay and conditions so should be part of IR system

Um, read between the lines, she's basically saying to oust the proven to be corrupt union greasy mitts out of the super pie. You want transparency? That is a great way to start!!

Justine, perhaps you dont mind being told which Industry Fund you must use and following your logic, would extend this to allowing a Union to dictate which Bank you use? As you stated, it is part of pay and conditions.....

Who wrote her speech...Scottyfrommarketing? its ignorance of our world-class super system and why it is so rated, is bad enough but the kids at home analogy is next level rubbish.

We don’t need radical IR change, we need a govt that gets it and is about sensibly improving our system, not vandalising it for bald-faced political ideology.

No pretty sure she has hit the nail on the head, and it's a great analogy of a molly coddled system screwed up by undue influences with their own self-interests at heart more than the benefit of the members.

Far from being radical, it's well past due and really should ever have been allowed in except for the keen intellect of Keating seeing the enormous potential for both the unions and ultimately Labor party funding.

What agreat speech! Here's hoping the Gv can finally get in and clean up the debacle of superannuation system that has been plagued with too many groups using it for their own profit, especially in the IR area.

About time, between her and Tim Wilson, we can only hope they can finally break the curse of Industry Funds manipulating figures and misrepresenting truth and essentially stealing from members, and get them out altogether!!!!!

The poor performance has mainly been in the retail fund side !!

A good example of why we need change. The only 'performance' for a Super fund, is its admin efficiency, provision and transparency of data and responsiveness to members. The assets the members choose to invest in provide the performance. Host plus Hi-Growth fund (mis-labelled under balanced) with 92% growth assets and 8% defensive assets has a reasonable performance relative to other Hi Growth funds but the default fund for a 55year will be conservative fund that has an altogether different performance.
Members need to pay attention to the assets they invest in as they drive performance.

If she was serious, she would shut down intra-fund advice admin fees for personal advice that most of the fund members never receive & cannot opt out of. If intra-fund isn't systemic molly coddling, what is?

So by that logic I shouldn’t have to also pay admin fees for call centre I don’t call, websites I don’t access, marketing stuff I never read, and so on. Unless you run a SMSF all these things are inescapable parts of the universal MySuper admin fee cost.

go back & read what I wrote. I said "personal advice", not fund admin support services. Totally different issue. But the truth is that the bulk of the intra-fund payments is being used for personal advice purposes. Even Q Super - Q Invest fund up to TWO personal advice consultations, under their intra-fund trail commissions system (its fully disclosed in their latest FSG). And no one does anything about it. What a scam against independent advisers being killed by FOFA. And the Union Super funds know exactly what their game is. This is about market control, not legislative consistency.

By the comments here most , if not all, of you have had to deal with an industry fund regarding death benefits. There is huge potential for a class action after being forced into these funds. They can and do ignore you! Legislation allows that. They have 90 days to respond but tell u if they don't you can write and adk why and the fund has 28 days to tell you why they didn't respond and to answer you original question .. legislation says a timely manner!! 12 months after my son died, and now 20 weeks for a further question
The whole system needs blowing up and superannuation made voluntary. It is NOT your money as per the National Press club stated by Kelly O'Dwyer!!

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